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Started By
Message
re: State Farm downgraded to a B rating
Posted on 3/29/24 at 4:44 pm to meansonny
Posted on 3/29/24 at 4:44 pm to meansonny
quote:
Insurance is state regulated.
Regardless of parent company.
The purpose of the department of insurance is to keep companies solvent while also protecting consumers. State Farm can't charge a rate in CA without the DOI approval.
This has nothing to do with my question.
The debate here is whether state farm (the entire/parent company) got downgraded to a B, or, if it's only their California subsidiary that was downgraded.
Is state farm organized in such a manner that the parent company is shielded from a subsidiaries financial woes?
Eta- I just pulled up the am best ratings and the parent company is A++ rated and the subsidiaries all carry separate ratings. Some are A-.
I'm in a niche line of the specialty insurance world and we don't see stuff like that.
This post was edited on 3/29/24 at 4:50 pm
1
Posted on 3/29/24 at 4:46 pm to 632627
quote:
Is state farm organized in such a manner that the parent company is shielded from a subsidiaries financial woes?
Yes.
Posted on 3/29/24 at 6:22 pm to LSUgolf04
quote:
California is a single state affiliate for a reason. It’s a very difficult to operate a business in that state due to the extreme regulatory overreach.
If you look into the pitiful background of the CA insurance commissioner it is understandable why CA is a terrible state for insurers.
Posted on 3/29/24 at 7:42 pm to thunderbird1100
quote:
State Farm came in hot on me last year trying to raise my wife and I's annual vehicle premiums (on 3 vehicles) from about $4600 to $6600.
I just got a quote from them for a million dollar liability policy on my farm, insurance on 30 50hp tractors and 2 cab tractors, 24 generators and 10 trucks and my annual premium is lower than yours
Posted on 3/29/24 at 7:59 pm to deltaland
Wow Louisiana s not dead last in something for once.
Posted on 3/29/24 at 8:55 pm to mule74
I have Dover Bay because it was the only company underwriting except for Citizens.
Should I be worried?
Should I be worried?
Posted on 3/29/24 at 9:47 pm to Bucktail1
quote:
No, it’s for their entire company and this is an enormous deal.
I read that it was only State Farm’s commercial liability group, not the personal lines group. State Farm’s commercial side underwrites some terrible risks, IMO.
Edit:
It was State Farm General Insurance Company that was downgraded.
State Farm General does write homeowners policies but they also write some commercial policies for State Farm as well.
LINK-Business Insurance Article
quote:
“A contributing factor to this decline was sharp increases in claim severity affecting the company’s umbrella and commercial multi-peril lines of business,” Best said.
This post was edited on 3/29/24 at 10:06 pm
Posted on 3/29/24 at 9:56 pm to LSUFanHouston
quote:
I have Dover Bay because it was the only company underwriting except for Citizens.
No I wouldn’t be worried. Dover Bay is a surplus lines subsidiary of State Farm, so they aren’t actually State Farm. Beyond that, I think Dover Bay is on pretty solid footing for a surplus lines carrier. You could definitely do worse.
Posted on 3/29/24 at 10:56 pm to mule74
They rarely will replace a roof. Not sure how they are in business.
Posted on 3/30/24 at 2:01 pm to thunderbird1100
quote:
State Farm came in hot on me last year trying to raise my wife and I's annual vehicle premiums (on 3 vehicles) from about $4600 to $6600. I told them to kick rocks they are insane wanting that and we ended up with AllState which we got slightly better vehicle coverage and the annual premium is $2600
We’re probably in different states and not knowing anything about vehicle types, driving records, deductibles or coverages… does even $2600/yr. seem reasonable?
Like I said, just curious. But that’s more than I pay a year for a daily driver, a street legal race car and three collectible automobiles.
Posted on 3/30/24 at 3:48 pm to Jag_Warrior
LA sucks for insurance. We pay $480/mo for 3 vehicles. A 7 yr old truck, new Honda sedan and old Honda sedan. 100/300 coverage. No current accidents or tickets. Granted, we do have a teen driver.
Posted on 3/30/24 at 4:00 pm to dualed
Sue them for bad faith
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